Section 186

Cancellation of registration.

186. (1) If, where a firm has been registered, or its registration has effect under sub-section (7) of section 184 for an assessment year, the ²¹[Assessing] Officer is of opinion that there was during the previous year no genuine firm in existence as registered, he may, after giving the firm a reasonable opportunity of being heard and with the previous approval of the ²²[Deputy] Commissioner, cancel the registration of the firm for that assessment year:

Provided that no such cancellation shall be made after the expiry of eight years from the end of the assessment year in respect of which registration has been granted or has effect.

(2) If, where a firm has been registered or its registration has effect under sub-section (7)of section 184 for any assessment year, there is, on the part of the firm, any such failure in respect of the assessment year as is mentioned in section 144, the ²¹[Assessing]Officer may cancel the registration of the firm for the assessment year, after giving the firm not less than fourteen days' notice intimating his intention to cancel its registration and after giving it a reasonable opportunity of being heard.

(3) Where the registration of a firm is cancelled for any assessment year, the ²¹[Assessing]Officer shall amend the assessments of the firm and its partners for that assessment year on the footing that the firm is an unregistered firm

(4) The provisions of section 154 shall, so far as may be, apply to the amendments of the assessments of the firm and its partners under sub-section (3)of this section, the period of four years specified in sub-section (7) of that section being reckoned from ²³[the end of the financial year in which the order cancelling the registration was passed.]]

 

 

 

[As amended by the Finance Act, 1989 and the Direct Tax Laws (Amendment) Act, 1989]